KARACHI: The Customs Court issued notices to special prosecutor for customs department and Investigation officer of Commissioner Inland Revenue Zone-I on a bail petition filed by Faisal Mirza, owner of M/s KZ Industries, who was nominated in first information report (FIR) for tax fraud by obtaining sales tax refund on the strength of fake and flying invoices and false zero-rated supplies without having any manufacturing facility.
On 17 August 2021, during the hearing, counsel for the applicant/ accused argued that his client is innocent and has been falsely implicated in this case, who is ready to submit surety and will appear each and every date of hearing, therefore, court may grant his bail till final judgment in this case.
Earlier, investigation officer had submitted that during the investigation, it was established that above mentioned suspect and others registered and unregistered persons who are directly, indirectly, knowingly, dishonestly, fraudulently and without any lawful excuse are the beneficiaries and whose criminal negligence and connivance by any act or caused to do any act, omitted to take any action including the making of supplies and taxable goods without payment of sales tax leviable under sales tax act, 1990, claiming illegal sales tax refunds on the strength of fake/flying invoices, having committed tax fraud as defined under section 2 (37) of the sales tax act, 1990.
He further argues that accused person evaded sales tax amounting to Rs. 9, 036, 512, therefore, case was registered against them for violated section 2 (2) 2(16) 2(17) 3, 6, 7, 8, 10, 22, 23, 26 and 73 of the sales tax act 1990 read with sales tax refund rules, 2006 and punishable under section 33(i) 33(13) of the sales tax act, 1990 and they evaded amounting to Rs9,036,512 to the national exchequer.
